The proposal was in response to the unraveling of
Houston energy trader Enron, which collapsed into financial
rubble and, by doing so, heavily damaged the retirement
nest eggs of many workers who had loaded up on Enron
shares.

Blackout

Regulators complained that some workers were not allowed
to sell the stock when they wanted.

“There is no excuse for telling employees ‘you can’t
sell the stock,’ said Massachusetts Secretary of State
William Galvin, author of the bill. The law would give
workers “the absolute right to sell company stock in their
401(k),’ Galvin said.

The proposed Massachusetts law states, that “it is
unlawful for any employer, in connection with an employee
benefit plan or pension account to which employees may
contribute, to prevent or restrict an employee, benefit
plan, or pension account from selling or otherwise
divesting itself of the securities of the employer.’

The issue arose when participants charged they were
improperly locked out of the plan from October 26 to
November 19. An Enron spokeswoman told Reuters that
the blocked access was part of a pre-planned change in plan
administration.